Will the Asian giants experience an economic slowdown as a result of the energy crisis? China and India are both on the verge of a significant energy crisis, according to press reports. Late last week, Reuters reported that China ordered 72 coal miners in Inner Mongolia to increase coal production by 100 million tonnes, and oil prices have gone across the country. In India, Northern states suffered from power cuts, and 108 of the country’s 135 coal plants have critically low stocks left.
The Indian Federal Minister of Power explained that energy demand has gone up by 20% compared to pre-pandemic levels. He also informed the local media that although the 5-6 coming months will be challenging for India, he is confident that India shall pursue its economic growth trajectory.
Power cuts have been reported in some of the major cities in both countries. This energy crisis will negatively impact the decarbonization targets of these two rapidly emerging superpowers. They both plan to boost fossil fuel production capacities to meet growing demand, both local and foreign.
Will the energy shortage impact Mauritius?
Mauritius imports its fossil fuels mainly from India and South Africa. Should the crisis deepen, Mauritian authorities may face difficulties in acquiring fossil fuel.
The share of the different fossil fuels within the total primary energy requirement in Mauritius in 2019 was as follows: coal (25.3%), fuel oil (18.7%), diesel oil (13.8%), gasolene (12.8%), dual-purpose kerosene (9.6%) and Liquefied Petroleum Gas (LPG) (7.2%), according to the Central Electricity Board.
Meanwhile, Mauritius has maintained the price of Mogas at Rs. 50.70 per litre and Rs. 37.30 per litre for Gas Oil.
